It is important for our readers to know how car insurance works when ride-sharing and a wreck occurs. It is important to know the different risks you may face when choosing between using Uber or a taxi cab.
There is currently no Alabama law requiring ride-sharing drivers to carry insurance above and beyond traditional personal car insurance. Generally, personal car insurance will not cover a ride-sharing driver in the event of a wreck. Personal auto insurance policies typically exclude coverage when using a vehicle as a business service. If a ride-sharing driver has only their personal automobile insurance, he or she may be personally liable for damages caused. Ride-sharing drivers should check with their company and/or their insurance agent to make sure they have coverage.
Similarly, if a passenger is involved in a wreck caused by the ride-sharing driver with only has a personal automobile insurance, the driver likely has no insurance. This is often remedied by the ride sharing company, but you want to do your research to be sure. Make sure the company provides coverage for its drivers and UM/UIM coverage as well. Be safe and educated on the risks of driving or riding with these cutting edge services.